A Millennial’s Steps to Paying off Debts

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Mary Rae Floresca| Negosentro.com

It might be too early for you to be swamped on your 20s, right? If you are experiencing debt right now, these steps will help you how to pay off your liabilities.

1. Total the amount

First and foremost, gather all your billing statements. Yes, it would be exactly like Confessions of a Shopaholic movie all over again. Get your pen and paper or better, open your excel spreadsheet and encode in the bills you have to pay off your debt. Your debts may consist of credit card bills, and utility balances. Listing everything down can give you a clear picture of how much you’ve spent already and what to prioritize to pay first.

2. Save, save, save

There’s a purpose why a piggy bank was invented and it was an eye-catcher for kids. But if you did not have one, it’s not too late to save at your age now. You save money by living within your means. Self-control comes in when saving, you should know how much is too much. Keep in mind that you are paying off debts, so don’t add more of it.

3. Pay whenever you have a little extra

Aside from living within your means, pay at least the minimum payment each month in order to stay current. Keep track of your bills, avoid late payments that can cause you additional fees. As you grow older, you will have more fees to pay, and it is an obligation of a true adult to pay fees and dues ON time. Have extra stash? Render it to pay off your debts.

4. Earn more

How? Sell your things, be it gadgets that you can give up when needed, or clothes. There are a lot of groups on Facebook where you can sell your clothes, gadgets, assorted thing or make-up. Next way is to be a side-hustler. Being a freelancer will help you more to pay your bills. Know your skills and utilize them.

5. Set your goals

When you know you are “adulating,” it is not too early to save for retirement.  Learn the basics and the purpose of investing. Target how much you need just in case you resign, or worse, get fired. When you retire, or get sick, where will you get the money when you can’t work? Expecting paycheck to paycheck will keep you hanging. You should plan and set your goals as early as now.

6. Invest in yourself

The best way not too add more to your debts is to take care of yourself. You are your best and most important investment. Eat healthy, exercise, we’re at this age when showing vanity is okay, so own it. You also invest in yourself when you want to be smarter. Learn new things, because a millennial’s steps to paying off debts is not just work, work and work.

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